Sunday, March 24, 2013

NOVEMBER 1 1873 – PASSAGE OF THE COINAGE ACT BY CONGRESS

1873 – PASSAGE OF THE COINAGE ACT BY CONGRESS
The fourth coinage act passed by Congress, the 1873 bill “demonetized” silver –
meaning silver was no longer accepted as currency or used as a metal to back
paper money. Only gold was now accepted as currency and used to back paper
money. With the money supply now contracted, the US went into an economic
depression. The demonitization of silver was also not apparent in the bill at
the time of passage. When this became public, there was national outrage.
Congressional passage became known as “the Crime of ’73.”